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Document Explanations (Plain English)

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An affidavit is a formal, written statement of facts that is voluntarily made by a person (the affiant) under an oath or affirmation. It is considered a legal document that carries the same weight as testifying in a court of law.

Because an affidavit is signed under the penalty of perjury, the information contained within it must be true and based on the affiant's personal knowledge.

Anatomy of an Affidavit

A properly drafted affidavit typically contains several key elements to ensure its validity in a legal or professional setting:

  1. The Title: A brief header identifying the document (e.g., "Affidavit of Identity" or "Affidavit of Service").
  2. The Venue: This states the location where the document is being notarized (e.g., State of Texas, County of Tarrant).
  3. Identity of the Affiant: A statement identifying the person making the document, usually including their full name and a declaration that they are of legal age and sound mind.
  4. The Statement of Facts: The body of the document, usually organized into numbered paragraphs. This section contains the specific details the affiant is swearing to be true.
  5. The Affirmation: A closing statement where the affiant swears that the information provided is "true and correct to the best of my knowledge and belief."
  6. The Jurat (Notary Section): The section where the Notary Public certifies that the affiant appeared before them, was properly identified, and took the oath.

The Role of the Notary

For an affidavit to be legally binding, it must be notarized. As a Notary, your role in this process is critical:

  • Verification of Identity: You must confirm the affiant is who they say they are using government-issued ID.
  • Administration of an Oath: You must ask the affiant to swear or affirm that the contents of the document are true. This is what distinguishes an affidavit from a standard signed statement.
  • Witnessing the Signature: The affiant must sign the document in your presence (or via a secure video link for RON sessions).

Important

An affidavit is not an affidavit without a jurat. If a signer brings you a statement without a jurat and asks you to "notarize it," you must ask them if they need to swear an oath. You cannot choose the type of notarization for them, as that would be considered the unauthorized practice of law.

Common Types of Affidavits

Affidavits are used across many industries. Some of the most common include:

  • Affidavit of Heirship: Used in estate planning to identify the heirs of a deceased person.
  • Affidavit of Financial Status: Frequently used in divorce proceedings or loan applications to verify income and assets.
  • Affidavit of Residence: Used to prove where a person lives for school registration or government benefits.
  • Affidavit of Service: A document signed by a process server to prove that legal papers were delivered to a party in a lawsuit.

Key Considerations

Warning

Perjury: Because an affidavit is signed under oath, providing false information in one can lead to criminal charges for perjury.

Personal Knowledge: An affiant should only include facts they personally know to be true. They should avoid including "hearsay" (information they heard from someone else) unless specifically required by a certain legal procedure.



Affidavit of Records Explained

An Affidavit of Records (often referred to as an Affidavit of Custodian of Records) is a legal document used to authenticate business or medical records so they can be admitted as evidence in a legal proceeding.

Essentially, it is a sworn statement by the person in charge of a company's files (the "Custodian") confirming that the records provided are true, accurate, and were created as part of the normal operations of that business.

Why is it used?

In a court of law, documents are generally considered "hearsay" and cannot be used as evidence unless a witness testifies that they are authentic.

The Affidavit of Records acts as a Hearsay Exception (specifically the "Business Records Exception"). It allows a business to submit thousands of pages of evidence—like bank statements, medical charts, or invoices—without requiring the person who wrote them to physically show up in court.

Key Elements of the Affidavit

For an Affidavit of Records to be legally effective, the Custodian must typically swear to three specific things:

  1. Ordinary Course of Business: The records were created and kept as a regular part of the business's daily activities.
  2. Timeliness: The records were made at or near the time the events actually happened.
  3. Knowledge: The records were created by an employee or representative of the business who had personal knowledge of the events described.

The Notary's Role

As a Notary, you will frequently encounter these when working with law firms, hospitals, or banks. Your responsibilities include:

  • Verifying the Custodian: Confirming the identity of the person signing on behalf of the business.
  • Administering the Oath: You must have the Custodian swear or affirm that the statements regarding the records are true.
  • The Jurat: You will complete a Jurat certificate, as this document requires the signer to be under oath.

Common Examples

  • Medical Records: A hospital's record keeper swearing that a patient's chart is the official, unaltered version.
  • Financial Records: A bank officer authenticating credit card statements for a debt collection lawsuit.
  • Employment Records: A HR manager verifying payroll records for a worker's compensation case.

Important

Authentication vs. Accuracy: The Affidavit of Records only proves that the records are authentic (the real documents from that business). It does not necessarily prove that the information inside the documents is 100% accurate—it only proves that these are the official files the company relies on.

Tip

If you are doing a Remote Online Notarization (RON) for one of these, ensure the Custodian has the digital versions of the records ready to be "attached" or identified within the electronic document, as the affidavit usually refers to the records as "Exhibit A" or "attached hereto."

Warranty Deed Explained

A Warranty Deed is a legal document used in real estate to transfer ownership of real property from a seller (the grantor) to a buyer (the grantee).

Unlike other types of deeds, a warranty deed provides the highest level of protection to the buyer because it includes "covenants of title"—legally binding promises that the grantor truly owns the property and has the right to sell it.

Types of Warranty Deeds

There are two primary versions of this document, and the difference lies in how far back the protection goes.

1. General Warranty Deed

This is the "gold standard" of deeds. It provides a full guarantee that the title is clear, not just during the time the seller owned it, but throughout the entire history of the property. If a hidden lien or owner from 50 years ago suddenly appears, the seller is legally responsible for fixing it.

2. Special (or Limited) Warranty Deed

This version is more common in commercial real estate or foreclosure sales. The seller only warrants that the title was clear during their period of ownership. They make no promises about what happened before they bought the property.

The Six Covenants of Title

When a General Warranty Deed is signed, the grantor is making six specific legal promises:

  • Covenant of Seisin: The grantor promises they actually own the property.
  • Covenant of Right to Convey: The grantor promises they have the legal authority to sell/transfer it.
  • Covenant Against Encumbrances: The grantor promises there are no "hidden" issues like unpaid taxes, liens, or easements that weren't disclosed.
  • Covenant of Quiet Enjoyment: The grantor promises the buyer won't be bothered by someone else claiming they own the land.
  • Covenant of Warranty: The grantor promises to defend the buyer's title in court if a third party ever claims ownership.
  • Covenant of Further Assurances: The grantor promises to sign any future documents needed to fix a title mistake found later.

Warranty Deed vs. Quitclaim Deed

It is important to understand how these differ, as you will likely see both in your Notary work:

Feature Warranty Deed Quitclaim Deed
Protection Highest Protection No Protection
Guarantees Promises title is clear. Only transfers "whatever interest" I have.
Best For Traditional home sales. Family transfers, divorces, or fixing typos.
Liability Seller is liable for title defects. Seller has zero liability.

The Notary's Critical Role

Real estate deeds must be notarized to be recorded in the public land records. Without your seal, the transfer of ownership is essentially "invisible" to the county.

  • Identity Verification: Deeds are prime targets for fraud. You must ensure the person signing away the property is actually the owner.
  • The Acknowledgment: Unlike an affidavit (which uses a jurat), a deed typically uses an Acknowledgment. This is a statement where the signer declares they signed the document voluntarily for its intended purpose.
  • RON Considerations: In many states, you can now perform Remote Online Notarization (RON) for warranty deeds. However, you must ensure the county where the property is located accepts electronically notarized and recorded documents.

Important

Recording the Deed: A warranty deed is not fully "official" until it is recorded with the County Clerk or Recorder of Deeds. As a Notary, you should remind your clients that they (or their title company) need to file the document immediately after notarization to protect their legal priority.

Warning

If you notice a Warranty Deed where the "Grantee" (buyer) name is blank, do not notarize it. This is known as a "deed in blank" and is illegal or invalid in most jurisdictions.

Closing Disclosure Explained

A Closing Disclosure (CD) is a five-page document that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs).

Lenders are required by law to provide this to borrowers at least three business days before they sign their loan documents. This is known as the TRID rule (TILA-RESPA Integrated Disclosure), designed to give borrowers time to compare the final terms with the initial Loan Estimate they received.

Detailed Breakdown of the 5 Pages

Page 1: Loan Terms & Projected Payments

This is the "big picture" page. It answers the most common questions:

  • Loan Terms: Shows the total loan amount, interest rate, and monthly principal/interest. It explicitly states if there is a Prepayment Penalty or a Balloon Payment.
  • Projected Payments: Breaks down the monthly payment over the years, showing how much goes to Principal & Interest, Mortgage Insurance, and your Escrow account (taxes/insurance).
  • Costs at Closing: Shows the total "Closing Costs" and the final "Cash to Close" (the actual amount you need to bring to the signing).

Page 2: Closing Cost Details

This page is a deep dive into every penny being spent.

  • Section A-C (Loan Costs): Includes the origination fee, points, appraisal fees, and credit report fees.
  • Section E-H (Other Costs): Includes taxes, government recording fees, prepaids (homeowners insurance, prepaid interest), and initial escrow payments.

Page 3: Calculating Cash to Close

This page compares the final numbers to the original Loan Estimate.

  • Calculating Cash to Close: Shows if your costs increased or decreased since you started the process.
  • Summaries of Transactions: A two-column table showing what the Borrower is due to pay versus what the Seller is due to pay.

Page 4: Additional Information About This Loan

This page covers the "fine print" of your loan agreement:

  • Assumption: Can you transfer this loan to someone else if you sell?
  • Late Payment: What is the specific fee and grace period?
  • Negative Amortization: Does your loan balance increase even if you make payments? (Usually "No" for standard loans).
  • Escrow Account: A detailed look at what is included in your escrow and what is not.

Page 5: Loan Calculations & Contact Info

The final summary page:

  • Total of Payments: The total amount you will have paid after you make all payments as scheduled.
  • Finance Charge: The dollar amount the loan will cost you.
  • APR (Annual Percentage Rate): The total cost of your credit as a yearly rate (higher than your interest rate because it includes fees).
  • Contact Information: Direct phone numbers and emails for the Lender, Real Estate Brokers, and Settlement Agent.

The Notary's Role at the Closing

As a Notary or Signing Agent, the Closing Disclosure is often the first document in the stack.

  • Point and Identify: You should point out the Monthly Payment, Interest Rate, and Cash to Close amount. Confirm these match the borrower's expectations.
  • The 3-Day Rule Check: You should verify that the borrower received the CD at least three days prior. If they say "I've never seen this before," it could stop the closing.
  • Avoid UPL (Unauthorized Practice of Law): You can tell a borrower what a number is, but you cannot explain why it is that way. If a borrower asks, "Why is my origination fee $2,000 higher than I thought?", you must direct them to call their Loan Officer before signing.

Important

The Cash to Close on Page 1 is the single most important number for the borrower to verify. If they have already wired funds, ensure the amount they wired matches (or exceeds) this number.

Tip

If you are doing a Remote Online Notarization (RON), the borrower will usually "e-sign" the CD before the video session or as the first document during the session. Make sure they have a clear digital copy for their records, as this is their final receipt for the entire transaction.

Jurat vs Acknowledgment (With Examples)

In the world of notarization, the two most common certificates you will encounter are the Acknowledgment and the Jurat. The fundamental difference lies in whether the signer is merely "acknowledging" their signature or "swearing to the truth" of the document.

1. The Acknowledgment

An Acknowledgment is used to ensure that the signer of a document is who they claim to be and that they have signed the document voluntarily.

  • Key Action: The signer must personally appear before you and declare (acknowledge) that the signature on the document is theirs and was made for the purposes stated in the document.
  • Signature Timing: The document can be signed before the person meets with you, as long as they appear in person to acknowledge it.
  • Standard Language: "Personally appeared... and acknowledged to me that they executed the same."

Example Scenario: The Power of Attorney

A woman brings you a Power of Attorney document. She signed it at home yesterday. You verify her ID and ask: "Did you sign this document of your own free will for the purposes stated inside?" She says yes. You then complete the Acknowledgment certificate.

2. The Jurat

A Jurat (sometimes called a "Verification upon Oath or Affirmation") is used when the signer is swearing that the contents of the document are true.

  • Key Action: You must administer an oath or affirmation to the signer.
  • Signature Timing: The document MUST be signed in your presence. If they bring it already signed, they must sign it again in front of you.
  • Standard Language: "Subscribed and sworn to (or affirmed) before me..."

Example Scenario: The Affidavit of Residence

A man needs to prove he lives in a certain school district. He brings an Affidavit. You verify his ID, then have him stand and raise his right hand. You ask: "Do you solemnly swear that the information in this affidavit is true and correct to the best of your knowledge?" He says, "I do," and then signs the document while you watch. You then complete the Jurat.

Comparison Table

Feature Acknowledgment Jurat
Purpose To confirm identity and intent. To confirm truthfulness of the content.
Oath Required? No. Yes, always.
Signed in Presence? No (can be signed previously). Yes (mandatory).
Common Documents Deeds, Contracts, Powers of Attorney. Affidavits, Depositions, Court Papers.
Key Verbiage "...acknowledged to me..." "...subscribed and sworn to..."

The Verbiage Difference (Certificate Examples)

Acknowledgment Certificate Sample:

State of Texas
County of Tarrant

This instrument was acknowledged before me on February 3, 2026, by John Doe.

Jurat Certificate Sample:

State of Texas
County of Tarrant

Subscribed and sworn to (or affirmed) before me on February 3, 2026, by John Doe.

Important

Signer Choice: As a Notary, you cannot choose which certificate to use for a customer. Doing so is considered the "Unauthorized Practice of Law" (UPL). If the document doesn't have a certificate attached, you must ask the customer: "Do you need to acknowledge your signature, or do you need to swear an oath to the truth of the document?"

Tip

For Remote Online Notarization (RON), the same rules apply. For a Jurat, you must see them digitally sign the document during the live video feed. For an Acknowledgment, they can have pre-signed it, but they must "virtually" acknowledge the signature during the recorded session.

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